Sahara to bail out Kingfisher Airlines with over Rs 250 cr loan

Subrata Roy's Sahara Group is believed to be in talks with cash-strapped airline Kingfisher Airlines, bailing it out with over Rs 250 crore loan. The Vijay Mallya-owned airline was recently in news when the Central Tax Department froze its bank accounts over non-payment of dues.

According to Headlines Today, sources in Sahara have confirmed the developments to be true.

"...As a friend, Subrata Roy has decided to help Vijay Mallya...The bailout amount is said to be more than Rs 250 crore," the source said.
 
The Mallya-owned carrier, with debt exceeding Rs 7,000 crore, had 10 of its bank accounts frozen on December 8 for non-payment of service tax. The issue was resolved after Kingfisher made part-payment of Rs 9 crore on December 14 and Mallya himself gave a written "undertaking" that it will pay the remaining dues by March 31, 2012.

On December 9, the government informed Parliament that banks have no plans to carry out a second round of debt restructuring for Kingfisher Airlines, which has outstanding loans worth around Rs 6,419 crore.